The Boeing Company (NYSE:BA) got a boost over its largest competitor, Airbus Group NV (EPA:AIR), when it took orders for $8.8 billion of jets from BOC Aviation Pte, a unit of Bank of China Limited (SHA:601988). BOC Aviation Pte, an aircraft leasing firm, is banking on the surging Asian demand for younger and newer airplanes in making this purchase.
The bulk of the order is for Boeing’s top-selling 737 family of aircraft, distributed between 30 of the current 737-800 version and 50 for the upgraded 737 MAX 8. The MAX 8 version uses a larger and more efficient engine and a slightly modified airframe. BOC Aviation will also take two wide-body 777-300ER, which brings the total to 82.
BOC Aviation Pte aims to modernize and expand its fleet by buying smaller and more efficient jets, which are growing demand from budget carriers across Asia. This acquisition from The Boeing Company (NYSE:BA) builds on a previous purchase last month from Airbus Group NV (EPA:AIR) for 43 A320 planes, consisting of 36 Airbus A320ceo and 7 of the newer A320neo.
The Boeing Company (NYSE:BA)’s the biggest competitor is Airbus Group NV (EPA:AIR). The company’s 737 model competes in the single-aisle category with the A320 jet family of Toulouse, France-based Airbus Group NV (EPA:AIR). Boeing 737 MAX is also competing directly against Airbus A320neo. The Boeing 777 model competes with Airbus A380, both these models were the largest twin-engine and are typically used on long-haul routes.
Last month, Airbus Group NV (EPA:AIR) got ahead of The Boeing Company (NYSE:BA) when they secured an order of 155 Airbus A320 aircrafts worth $11.8 billion from SMBC Aviation Capital, a Japanese firm. This purchase is a landmark for the industry as it is the largest ever single firm order for a single-aisle aircraft by a worldwide leasing company.
This article has been written by John Aquino.